Prairie Provident Resources (PPR) AI Stock Analysis

• Market Cap: $28.03M
• Dividend Yield: N/A
• Average Volume (3M): 138.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -5.45%
• EPS Growth: -4.42%
• Country: CA
• Employees: 20
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 1,401,576,000
• 10 Day Avg. Volume: 79,081
• 30 Day Avg. Volume: 138,069
• PEG Ratio: 0.07
• Price to Book (P/B): -0.85
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -3.87
• Enterprise Value/Market Cap: 3.54
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 20.65
• Enterprise Value/Ebitda: 13.82
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: C$0.00 ▼(-100.00% Downside)

Prairie Provident Resources' overall stock score is primarily impacted by its weak financial performance and concerning valuation metrics. The company's financial instability, highlighted by negative equity and cash flow challenges, poses significant risks. Technical analysis further indicates a bearish trend, with the stock trading below key moving averages. The absence of earnings call data and notable corporate events leaves these areas unaddressed in the analysis.

Prairie Provident Resources Business Overview & Revenue Model

Company Description

Prairie Provident Resources Inc. engages in the exploration and development of oil and natural gas properties in Alberta. It explores for light and medium oil, heavy crude oil, and natural gas liquids. The company principally focuses on the Princess and Michichi areas targeting the Lithic Glauconite, Detrital, Ellerslie, and Banff formations Southern Alberta; and the Waterflood project at Evi property located in the Peace River Arch area of Northern Alberta. Its reserves, producing properties, and principal exploration prospects are situated in the provinces of Alberta. The company was incorporated in 2016 and is headquartered in Calgary, Canada.

How the Company Makes Money

Prairie Provident Resources generates revenue primarily through the sale of crude oil and natural gas extracted from its operational fields. The company employs a revenue model that includes direct sales to refineries and natural gas processing plants, as well as entering into contracts with third parties for transportation and processing services. Key revenue streams consist of production from its owned assets, enhanced by strategic partnerships with local operators and service providers that assist in optimizing production efficiency. Additionally, market conditions, such as oil and gas prices, significantly influence PPR's earnings, making them responsive to fluctuations in commodity markets.

Prairie Provident Resources Financial Statement Overview

Summary

Prairie Provident Resources faces significant financial challenges across all verticals. While there is some revenue growth, profitability remains a major concern with negative margins. The balance sheet is weak, with high leverage and negative equity, posing financial risks. Cash flow struggles further exacerbate the company's financial position. Overall, the company needs to address its profitability and leverage issues to improve its financial health.

Income Statement

The company shows a mixed performance in its income statement. The TTM data indicates a positive revenue growth rate of 11.51%, suggesting some recovery. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is low at 10.82%, indicating challenges in cost management. Overall, the income statement reflects a company facing profitability issues despite some revenue growth.

Balance Sheet

The balance sheet reveals significant financial instability. The company has a negative stockholders' equity, resulting in a negative debt-to-equity ratio, which is concerning. The return on equity is positive but misleading due to negative equity. The equity ratio is also negative, indicating that liabilities exceed assets. Overall, the balance sheet suggests high leverage and financial risk.

Cash Flow

Cash flow analysis shows challenges in generating positive free cash flow, with a negative free cash flow growth rate of -24.08% in the TTM. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income to cash. The free cash flow to net income ratio is negative, reflecting cash flow struggles. Overall, the cash flow statement highlights liquidity issues and cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.39M	43.25M	67.93M	120.60M	84.42M	51.72M
Gross Profit	4.80M	477.00K	4.03M	30.93M	10.89M	-20.64M
EBITDA	7.18M	7.66M	15.70M	34.48M	44.61M	-43.23M
Net Income	-18.48M	-16.96M	-20.12M	-2.40M	10.42M	-90.77M
Balance Sheet
Total Assets	120.67M	117.87M	167.33M	223.13M	232.96M	220.32M
Cash, Cash Equivalents and Short-Term Investments	2.24M	4.72M	1.83M	6.57M	1.85M	4.54M
Total Debt	63.52M	58.15M	77.77M	127.00M	112.21M	108.22M
Total Liabilities	172.59M	166.91M	210.22M	292.24M	299.52M	297.23M
Stockholders Equity	-51.92M	-49.04M	-42.89M	-69.11M	-66.56M	-76.91M
Cash Flow
Free Cash Flow	-15.10M	-10.74M	-11.37M	5.48M	-4.63M	6.42M
Operating Cash Flow	5.66M	18.00K	-10.65M	24.48M	9.68M	10.18M
Investing Cash Flow	-21.36M	13.54M	-562.00K	-20.48M	-11.49M	-4.98M
Financing Cash Flow	15.66M	-10.67M	6.58M	520.00K	-885.00K	-4.11M

Prairie Provident Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ROK	55 Neutral	C$49.41M	7.40	-5.42%	―	-13.32%	-811.11%
NSE	44 Neutral	$57.04M	-4.18	-434.16%	―	―	-23.72%
EOG	41 Neutral	£44.13M	-14.14	-11.95%	―	―	86.19%
TAO	41 Neutral	C$24.91M	-4.09	-12.39%	―	462.37%	35.49%
PPR	40 Underperform	$28.03M	-1.72	―	―	-5.45%	-4.42%
AFE	35 Underperform	C$62.29M	-0.90	-6.81%	―	―	98.92%

Prairie Provident Resources Corporate Events

Prairie Provident Sees Production Rise Amid Financial Adjustments in Q3 2025

Prairie Provident Resources reported a 6% increase in production for Q3 2025 compared to the previous year, driven by enhanced Basal Quartz production. However, the company faced a net loss of $6.9 million, attributed to higher operating expenses and lower pricing, despite a $10.9 million gain on debt modification in the previous year. In a strategic move, the company completed a preferred share financing of $26.5 million and amended its debt agreements to extend maturities, which is expected to improve financial flexibility. Additionally, the company initiated the drilling of a new well in its Princess area and started constructing a water disposal facility to reduce operating costs and maximize production.

Prairie Provident Secures C$26.5 Million in Equity Financing and Amends Debt Terms

Prairie Provident Resources Inc. has successfully completed a preferred share financing, raising C$26.5 million, and amended its debt agreements to extend maturities by 24 months and defer cash interest obligations through 2026. These financial maneuvers aim to strengthen the company’s capital structure and provide greater financial flexibility, potentially enhancing its operational stability and market positioning.

Prairie Provident Resources Secures Financing and Debt Amendments to Bolster Financial Health

Prairie Provident Resources announced non-binding term sheets for a preferred share financing and debt amendments to raise US$18.9 million in equity capital and extend debt maturities by 24 months. This initiative aims to improve the company’s financial position, allowing it to fulfill existing obligations and fund a drilling program for new wells, which is crucial for its business plan execution and future growth.